Tesla Insiders: Musk’s Absence Hurts

What Happened?
Senior Tesla managers and employees told The Washington Post that Elon Musk has “ghosted” the company, diverting focus to political ventures and controversial behavior. Internal concerns spiked after Musk endorsed policies conflicting with Tesla’s sustainability goals, performed a Nazi salute at an event, and aligned closely with former President Donald Trump, who opposes federal EV incentives. Sales in Europe plummeted—down 37.9% in Norway, a global EV leader while vandalism targeting Tesla’s “anti-climate” image surged. Competitors like Polestar report increased customer switches, citing Musk’s conduct.

Why Does it Matter?
Tesla’s identity hinges on accelerating sustainable energy. But Musk’s support for Trump who aims to gut EV tax credits and fossil fuel regulations undercuts that mission. Shareholders like Kevin Smith, who sold his stock, say Musk’s actions betray Tesla’s original vision. Internally, employees fear reputational damage is irreversible. “He’s inflicted massive harm on Tesla’s perception,” said Nell Minow, former Tesla investor.

The Bigger Picture
Leadership distractions threaten innovation. Tesla’s 2024 struggles flat revenue, profit drops, delayed projects like the $400M “armored Tesla” deal signal deeper instability. Meanwhile, Musk’s political stances alienate eco-conscious buyers. European markets, where WWII’s shadow lingers, reject his inflammatory gestures. Tesla risks becoming a cautionary tale: Can a company survive when its CEO’s persona overshadows its purpose?

Where Do We Go From Here?
Employees argue Tesla needs focused leadership with or without Musk. Rebuilding trust requires distancing from partisan politics and realigning with sustainability goals. Competitors like Polestar are seizing the moment; CEO Michael Lohscheller says, “People are switching brands because of values”. For Tesla, course correction means Musk either reengages or steps back.

Final Thoughts
When a CEO’s personal brand overshadows their company, employees and customers pay the price. Tesla’s story isn’t just about cars it’s about how leadership choices ripple through teams, investors, and global markets. As one shareholder lamented, “I bought into the scam. Now he’s doing the same to the country”. The question isn’t whether Tesla can recover. It’s whether Musk still wants it to.

Sources: The Washington Post, Wired, ValueEdge Advisors, Tesla360.nl, Polestar.

Talk to me: Would you invest in a company whose leader’s values clash with yours? Let’s discuss over coffee. ☕️